§ 553.61. When is a guarantor subject to direct action for claims?
125 words·~1 min read·
/us/cfr/t30/s§ 553.61·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)If you are a guarantor, then you are subject to direct action for any claim asserted by:
(1)The United States for any compensation paid by the Fund under OPA, including compensation claim processing costs; and
(2)A claimant other than the United States if the designated applicant has:
(i)Denied or failed to pay a claim because of being insolvent; or
(ii)Filed a petition in bankruptcy under 11 U.S.C. chapters 7 or 11.
(b)If you participate in an insurance guaranty for a COF incident (i.e., oil-spill discharge or substantial threat of the discharge of oil) that is subject to claims under this part, then your maximum, aggregate liability for those claims is equal to your quota share of the insurance guaranty.